Banking Laws (Amendment) Bill 2024: Nominees and Directors
Why in the news
Parliament cleared a Bill changing five banking-sector laws to improve governance, nominee rules and reporting norms.
Main provisions
| Area | Change |
|---|---|
| Nominees | Up to four; simultaneous nomination for cash and fixed deposits; lockers only simultaneous |
| Substantial interest | ₹5 lakh raised to ₹2 crore, first revision in nearly six decades |
| Co-operative directors | Tenure 8 to 10 years (chairman and whole-time directors excluded); central co-op bank director may sit on a state co-op bank board |
| Reporting | On the 15th and last day of each month, not the second and fourth Fridays |
| Auditors’ pay | Banks get more freedom to fix statutory auditors’ remuneration |
Government position
- Finance Minister Nirmala Sitharaman promised strict action on fraud and defaulters.
- The Enforcement Directorate handled 912 bank fraud cases in five years.
- Write-offs are not loan waivers; recoveries continue.
- PSBs posted a record ₹1.41 trillion profit in FY24, with growth expected in FY25-26.
Significance
- Nominee flexibility helps estate planning.
- New threshold fits present economic conditions.
- Longer tenure steadies co-operative banking.
Exam angle
- Five Acts affected.
- Substantial interest: ₹2 crore now.
- Nominee limit: four.